Instead of lawyers, guns and money - this month we bring you Politicians, Gearing and Money!

1. How much have property values changed in 1 vs 5 years?

2. How could the election change your finances?

3. Want to earn more money? Maybe it's time for a career change.

4. Australia has a new 50c coin!

As always, book in a free chat if you want some help with your finances!

Call me now on: 0402 408944

How much have property values changed in 1 vs 5 years?

It’s no secret property prices are falling across Australia. Capital cities have combined to fall 8.2% in the past 12 months, while combined regional areas have fallen 2.1%.

While it’s obviously discouraging for owners to see their prices drop, buyers should feel encouraged with affordability issues easing. It’s also critical to view the long term performance of property in this country - in the past 5 years, property across the entire country has still grown 15.9%

So if you’re looking to refinance or buy a property, the amount a lender values your property at is critical and not all lenders are the same.

Give me a call anytime you want to chat about making sure you get your property valuation right.

How the election could change your finances.

The federal election has been called for Saturday May 18th. There’s obviously a range of issues both parties differ on but let me shed some light on two changes that could impact your property and finances.

1. Capital Gains Tax (CGT) Currently capital gains taxes can be discounted at 50% if the asset has been held for more than 12 months. If they win, the Labor government will halve the capital gains discount to 25% for all assets purchased before a date yet to be determined. Labor has said small business assets and investments by super funds will be excluded.

2. Negative Gearing Currently property investors can deduct a range of expenses (such as repairs and mortgage costs) incurred against their income taxes. Labor has proposed significant changes to negative gearing that would see only new dwellings allowed the same deductions. Any existing properties that are negatively geared would be grandfathered as of January 1st 2020.

If you are feeling any uncertainty around the election and how it might impact your finances I’m happy to chat.

Want to earn more money? Change jobs.

An interesting statistic came across my desk earlier this month - Australians who change jobs experience higher wage growth than those who stay in the same role.

From a lending perspective, a higher income will help your loan get approved and improve your borrowing capacity. The only downside is that you may need to wait 6 months or until your probation period is over until you apply for a loan. Lenders need reassurance that you’re in a secure job and that you can make repayments.

If you’re looking to switch jobs and want to talk about how it might impact your borrowing capacity, book in a free appointment.

Australia has a new 50 cent coin.

In celebration of the International Year of Indigenous Languages, the Australian Mint has released a 50 cent coin decorated in 14 different Aboriginal Australian words for money.

Save 14 of these each day for a year and you will have saved nearly 18,000 Wangarri :-)